SAN FRANCISCO -- Google (GOOG) is developing a video-game console and a wristwatch based on its Android operating system, according to a report in the Wall Street Journal.

The devices could be available as soon as this Fall, the report, which cited anonymous sources, said.

Google, the world's No.1 Web search engine, is also working on a revamped version of the Nexus Q music-streaming device, the report said. Google unveiled the Nexus Q in June 2012, but never released the product, which received critical reviews.

Mountain View-based Google is increasingly involved in the hardware business as it seeks to better compete against iPhone-maker Apple (AAPL). It acquired mobile phone company Motorola Mobility last year and Google is currently testing a wearable computing device known as Google Glass.

Google's Android operating system is the world's most popular mobile software, featured on three out of every four smartphones sold. A video game console could provide a significant opportunity for Google to expand Android's reach beyond its stronghold in smartphones and tablets.